General analysis Brent for 30.09.2021

Current Dynamics

Brent is consolidating near the local highs. The potential for growth in the hydrocarbons market remains high, given the growing energy crisis. Strong dollar limits the potential of Brent, at the same time oil is almost the only one that managed to finish the previous session in the positive zone.

At the same time, according to EIA data, the US inventories of major petroleum products have increased over the past week. USA production has now returned to 11.1 million BPD, the same level as before the hurricane in the Gulf of Mexico. It is also worth noting that many investors have abandoned gold in favor of commodities and a possible return to buying gold would put pressure on the oil market.

U.S. GDP and labor market data will be released at 14:30 (GMT +2) today. The Fed governor is scheduled to speak at 16:00 (GMT+2). Friday at 19:00 (GMT+2), Baker Hughes will release data on the number of active U.S. drilling rigs.

Support and resistance levels

On the 4-hour chart the instrument is testing the resistance level of 78.00. The Bollinger Bands indicator turned sideways and the price range narrowed insignificantly, which indicates a correction of the uptrend. The MACD histogram is holding a buy signal. Stochastic is approaching the oversold area, no signal to open positions has been formed.

Support levels: 73.10, 74.40, 75.60, 76.85.

Resistance levels: 78.00, 79.45, 80.00, 80.70.

Trading scenarios

Long positions can be opened at the current price with a target of 80.00 and a stop loss at 77.25. Implementation period: 1-2 days.

Short positions should be opened below the level of 77.30 with a target of 76.05 and a stop-loss at the level of 78.05. Implementation period: 1-2 days.